Mumbai: Logistics player Gati on Wednesday reported an over two-fold jump in September quarter net profit at Rs. 12.49 crore on a consolidated basis. The company had posted a post-tax profit of Rs. 5.76 crore for the corresponding quarter a year ago. Total income rose to Rs. 411 crore as against Rs. 363.30 crore in the year-ago period. The Hyderabad-based company said its cold chain arm, Gati Kausar India, has raised Rs. 30 crore by the sale of equity shares and issuing compulsory convertible preferential shares (CCPS) to private equity fund Mandala Capital AG.
Apart from that, it has also raised Rs. 120 crore through the issue of non-convertible bonds to the fund, it said in a statement. The funds raised will be used to build a network of cold warehouses across the country over the next three years which will enable Gati to offer integrated cold chain logistics and supply chain management, it said. It can be noted that investor interest in the cold chain logistics has been increasing in the recent days.
Snowman Logistics raised Rs. 197 crore through an initial public offering, while Future Group has said that it is also on the lookout for acquiring a cold chain company. The Gati statement said Mandala, whose founders and partners include agri entrepreneurs and Altima Partners LLP, a multi-billion dollar investment fund with substantial investments in the agriculture sector globally.